CBX Weekly Newsletter // 21 August 2019
- Bitcoin Looking to test $9K
- Vitalik Buterin: Increasing Transaction Costs Risk Limiting Ethereum Adoption
- Square Crypto Boosts Bitcoin Development
Bitcoin Looking to test $9K
Bitcoin (BTC) is looking to test $9K after a failed attempt to move above $11K
After a sharp sell-off last week, the top cryptocurrency by market value had recovered over 5%, before falling again from a now confirmed rising wedge pattern on the 4-hour chart.
The price moved above the short term moving averages (12 and 26-day) on the daily timeframe convincingly but was lacking enough volume. Bulls were expecting another test $12.3K which was the last high on the 6th of August.
The price is still holding support on the moving averages on the Weekly timeframe which is a level that is still holding since the beginning of this bull run. If the prices break that level of support then the prices could fall below $10K.
Other cryptocurrencies have also recovered but they still need to move above the short term moving averages (12 and 26-day) to prove a trend change, so far the major names such as LTC, ETH, and XRP can’t move above those levels in both their USDT and BTC pairings, this is why Bitcoin dominance continues to increase rising well above 70%.
Bitcoin is trading at $10,160 on CBX at the time of writing.
Vitalik Buterin: Increasing Transaction Costs Risk Limiting Ethereum Adoption
According to Ethereum creator Vitalik Buterin, the rising costs of transactions on the Ethereum Blockchain is preventing projects to adopt the software.
Buterin suggested that many projects that are considering building using his Blockchain will likely be butted out as the Blockchain could be overloaded with transactions, Vitalik’s comments indicate the current severity of the problem as he suggests that the Ethereum Blockchain gets overcharged due to the number of transactions.
He told several newspapers that “If you’re a bigger organization, the calculus is that if we join, it will not only be more full but we will be competing with everyone for transaction space. It’s already expensive and it will be even five times more expensive because of us. There is pressure keeping people from joining, but improvements in scalability can do a lot in improving that.”
Buterin’s comments explain the difficulties ahead for the project as well as major planned upgrades including Ethereum 2.0 and a switch to proof-of-stake consensus algorithm.
Ethereum’s seven-day transaction fee average, a measure of demand on the network, actually sits at a 50-day low, falling since July 1 to sit around 0.11 ether per transaction currently.
Buterin also pointed toward low-risk uses of blockchain, such as identification of certifications, as adoption-leading technology.
Ethereum is currently trading around $187.9 on CBX at the time of writing.
Square Crypto Boosts Bitcoin Development
Square Crypto is the division of the payments company that focuses exclusively on cryptocurrencies especially bitcoin, just hired one of the world’s most creative Bitcoin developers.
Matt Corallo, the co-founder of Blockstream and Chaincode Labs alum previously authored notable efficiency improvements such as the rust-lightning implementation, this improvement makes it easier for users to build layers on the bitcoin network. Corallo said this week that he’ll be joining the company to experiment with models for accelerating bitcoin development.
The team that will be working alongside him is headed by former Google director Steve Lee. According to a tweet by Square and Twitter founder Jack Dorsey, the team will need at least two more engineers and a designer to work full-time on open source contributions to bitcoin.
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